Scribd
Upload
134 views10 pages

Value Proposition

This document discusses the importance of having a clear value proposition when presenting an innovation or new idea. It defines the key elements of an effective value proposition as: the customer need, the approach to address that need, the benefits over alternatives, and how it compares to the competition. Examples are provided of good and bad value propositions. The reader is encouraged to be quantitative rather than qualitative when describing these elements. Overall, the document emphasizes that having a compelling value proposition is crucial to effectively "selling" an innovation or new idea.

Uploaded by

Suresh Malodia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
134 views10 pages

Value Proposition

This document discusses the importance of having a clear value proposition when presenting an innovation or new idea. It defines the key elements of an effective value proposition as: the customer need, the approach to address that need, the benefits over alternatives, and how it compares to the competition. Examples are provided of good and bad value propositions. The reader is encouraged to be quantitative rather than qualitative when describing these elements. Overall, the document emphasizes that having a compelling value proposition is crucial to effectively "selling" an innovation or new idea.

Uploaded by

Suresh Malodia
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 10

VALUE PROPOSITION

R.D. SISSON
INNOVATIONS: HOW TO SELL THEM
THE VALUE PROPOSITION!

Can you explain your innovation/thesis in 3 minutes?


Including the need, the approach, the benefits and the
competition/alternatives?

Need Approach Benefits

50mpg? Weight Increased


Zero emissions? reduction by market share?
Comfort and materials
style? substitution?
Improved
engine
technology?
ELEVATOR PITCH EXAMPLES

http://www.youtube.com/watch?v=Tq0tan49rmc

http://www.youtube.com/watch?v=QK3ZdaoKXNQ
&feature=related

http://www.youtube.com/watch?v=Ed-
gz93EXKk&feature=related
THREE MINUTE THESIS EXAMPLES

http://www.youtube.com/watch?v=Hah0OqK7D8M

http://www.youtube.com/watch?v=sUd33kREcxE&f
eature=related

http://www.wpi.edu/Admin/Provost/GRAD/2011ipc.
html
VALUE PROPOSITION DEFINITION

Your Value Proposition is: a statement that includes


your important customer and market
Need along with your new, compelling, and defensible
Approach to address that need with superior
Benefits per costs when compared to the
Competition and/or other alternatives

Successful Value Propositions are quantitative and


easy to understand and remember
The four parts of your value proposition are the
fundamentals: they must always be answered
AN ALL-TOO-TYPICAL FIRST DRAFT

The world needs a little red wagon


AN EVERYDAY EXAMPLE

I understand that you are hungry (Need). Lets go


to the Campus Center (Approach). It has great
food, its quiet, and we can continue our discussion
better (Benefits/costs) than McDonalds
(Competition/alternative).

We naturally create Value Propositions in our


everyday life
An SRI employee even developed one for a marriage
proposal
It worked!
When translated to the business environment, they
are remarkably rare
Remember: only your customer defines your value
IMPROVE YOUR VALUE PROPOSITION,
BE QUANTITATIVE
Need
Not: The market is growing fast
Rather: Our market segment is $2B/yr and growing at 20%/yr
Approach
Not: We have a clever design
Rather: We have created a patent-protected, one-step process
that replaces the current two-step process with the same quality
Benefits
Not: The ROI is excellent
Rather: Our one-step process reduces costs by 50% and results in an
expected ROI of 50% per year with a profit of $30M in year 3
Competition
Not: We are better than our competitors
Rather: Our competitors are Evergreen Corporation and Bigway,
which use the current two-step process

Qualitative statements are not persuasive!


I 3 JUDGING CRITERIA
The Need was clearly presented in a compelling presentation. (0 10)
- (0-1) did not hear a need
- 10 = the need was important and clear.
-Is the idea based on a clearly identifiable client/customer need?
-Is it innovative, bold, and world-changing?
-Has the need been clearly defined and supported?

The Approach will meet the Need. (0 5)


-Does the idea represent a truly original concept?
-Has technical feasibility been demonstrated?
-Has a reasonable strategy for moving ahead been made?
-Is there a path to commercialization?

The Benefits of this project are clear. (0 5)


-Is the value proposition defined?
-Is there intellectual property involved?
-Is there market data to support the proposed strategy?
-Does the idea have a competitive advantage?
-Is it a viable investment candidate?

The Costs and Competition are clear. (0 5)


-Have the risks inherent in the idea been identified and dealt with?
-Is there a plan to mitigate risks?
-Is feasibility based on evidence or assertions?
REFERENCES

SRI International

Slides with RDS additions from Curt Carlson


CEO SRI

Innovation by Curtis R. Carlson and William W.


Wilmot, Crown Business, 2006.

You might also like